Federal Award Findings and Questioned Costs
Finding 2023-001
Federal Agency Name: Department of Health and Human Services
Assistance Listing Number: 93.498
Program Name: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution
Initial Fiscal Year Finding Occurred: 2023
Finding S...
Federal Award Findings and Questioned Costs
Finding 2023-001
Federal Agency Name: Department of Health and Human Services
Assistance Listing Number: 93.498
Program Name: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution
Initial Fiscal Year Finding Occurred: 2023
Finding Summary: The District did not reduce expenses by amounts reimbursed by other sources related to cost-based reimbursement, as some costs incurred in providing services to the Medicare population are reimbursed.
The amount of questionable costs not reduced for Medicare reimbursement total $369,475. However, the District had unreimbursed expenses identified on the HRSA Period 4 report as well as additional payroll in excess of what was reported:
Additional ARP RURAL Personnel Expenses reduced for amounts reimbursed by other sources Q4 (2022) $45,337
Additional ARP RURAL Fringe Benefit Expenses reduced for amounts reimbursed by other sources Q4 (2022) $10,820
Unreimbursed Expenditures attributed to COVID-19 (reported on Period 4 Report) reduced for amounts reimbursed by other sources $9,122
TOTAL UNREIMBURSED EXPENDITURES $65,279
The District would appreciate consideration of the $65,279 unreimbursed expenses in determining the amount owed back for unspent funding so as to reduce the amount to be paid back to HRSA to $304,196.
Corrective Action Plan: The District will enhance internal control practices to ensure expenses are reviewed for reimbursement from other sources and meet the requirements of the federal program. To ensure that expenses are reduced for amounts reimbursed by other sources, the District will incorporate a cost ratio calculation in their process of computing allowable expenses for federal funding programs.
Responsible Individuals: Catherine White, Chief Financial Officer and Pennie Peasley, Accounting Manager
Anticipated Completion Date: April 1, 2024